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Cost of living crisis erodes employee trust

The ongoing cost of living crisis is causing employees to be less trusting of their employers.

Research from financial wellbeing platform Wagestream found 30% of employees think their employer cares about their financial health, down from 52% before the height of the cost of living crisis.

The number of people who previously thought their employer didn't care about their financial wellbeing has also increased from 22% to 35%.

Impact of the cost of living crisis:

Soaring cost of living prompts calls for financial support for employees

Providing real support in the cost of living crisis

Pay rises peak in cost of living crisis

Jamie Lawrence, insights director at Wagestream, said companies could communicate better with employees to help them deal with money worries.

He said: “Money stigma is massively compounding financial stress throughout this crisis. Of those struggling, 76% have not approached their employer for help, with almost a third citing shame and embarrassment.

"Along with better communicating benefits and putting savings tools in place, HR teams can create real, instant impact by tackling money stigma; from thinking carefully about using non-judgemental language, to sharing accessible, meaningful stories that make the topic feel real and approachable."

The country's cost of living situation has been worsened by record inflation level of 9.4% and rising energy prices which have plunged workers into fuel poverty.

The Bank of England, which forecast inflation to reach 13% by the end of 2022, also increased interest rates to 1.75%, the highest figure since 1992.

Financial pressures are having a major impact on people in the country. The research also showed 72% of people are worrying about money at least once a week, with more than half (52%) worrying about money more than anything else. This has led to 76% saying their mental health has declined as a result.

Wagestream surveyed 9,500 people between July 2021 and June 2022.